Town Council Meeting - Budget Workshop

TOWN OF HERTFORD BUDGET DISCUSSION MONDAY, JUNE 8, 2021 @ 7:00PM HERTFORD COMMUNITY CENTER(in person and on Zoom) The Town Council of Hertford held a budget session on Monday, June 8, 2021 at 7:00pm. COUNCILORS PRESENT Mayor Earnell Brown Mayor Pro Tem Ashley Hodges Councilman Frank Norman (Zoom) Councilman Jerry Mimlitsch Councilman Quentin Jackson STAFF PRESENT Town Manager Pam Hurdle, Clerk Olga Simpson A quorum was present Mayor Brown called the meeting to order. Manager Hurdle gave the invocation which was followed by the pledge of allegiance. RECOMMENDED ADJUSTMENTS TO GOVERNING BOARD BUDGET (3) Governing Board Reductions: Mayor Pro-Tem Hodges A. Insurance Benefits Reduce insurance benefits for Council members going from $34,412 to $17,881. Councilman Mimlitsch and Mayor Brown have declined their insurance benefits for the rest of the year. B. In-Kind Donations: Miscellaneous Expense Contingency increased from $5,000 to $10,000 C. Reduce Traveling and Training: Reduction of traveling and training from $13,000 to $5,000 After further discussion, Councilman Jackson motioned to accept the Manager’s Recommended Budget for FY 21/22 Budget as written for the Governing Board. Councilman Mimlitsch seconded. Councilman Mimlitsch made a friendly amendment that his insurance be dropped at the end of the month. Mayor Brown added a friendly amendment to add her insurance to miscellaneous for miscellaneous income. Councilman Jackson accepted the amendments. Council agreed, whatever is saved from Councilman Mimlitsch and Mayor Brown will be added to in-kind. Mayor Pro Tem Hodges recapped the motion and explained what adjustments were needed to balance the budget. Due to the ripple effect and the work that was done, Mayor Brown suggested Council take the recommended numbers presented by Mayor Pro Tem Hodges. Budget amendments can be made. After further discussion, Mayor Brown recessed the meeting at 8:39pm. The meeting reconvened at 8:45 pm 1 Councilman Norman said the motion was to accept the Manager’s recommended budget for the Governing Board. If Council does not accept it, based on the proposed recommendations, there should be a surplus somewhere of $8,000. Point of Clarification Mayor Pro Tem Hodges said when voted on last year, Council discussed making the proposed changes. What was done did not balance. His suggested changes are where it says Board Approved. Council will vote on the proposed changes on this draft. He will change it here based on the vote. As Council proceeds through each budget, he will keep updating Council with it and inform Council. As Council votes on changes, let us see what happens as we proceed through the rest of the budget. Mayor Brown recapped the Motion to keep the Manager’s Recommended Budget for the Governing Board as written. This will include maintaining the salary, the insurance, the travel, and training, but not provide additional dollars for miscellaneous. Roll Call Vote: To keep the Manager’s Recommended Budget $177,997.00. First friendly amendment: Insurance for Councilman Mimlitsch and Mayor Brown will be deducted from the $34,412. The second friendly amendment: the difference will be added to the in-kind to be divided equally. The motion passed 3-2. Councilman Mimlitsch Nay Councilman Norman Yay Mayor Pro Tem Hodges Nay Councilman Jackson Yay Mayor Brown Abstain Mayor Brown questioned if Council is locked into $177,997. Manager Hurdle responded that they are not locked in. Budget amendments can be made. According to Manager Hurdle, right now the budget is going to be out of balance if Council continues as they are going. Council is to review the budget and give Manager Hurdle the recommendations so that she can review them and balance the budget. Councilman Jackson motioned to take the $175,000 for 911 dispatch out of the budget. Councilman Norman seconded. The motion failed 3-2. Roll Call Vote: Councilman Mimlitsch Nay Councilman Norman Yay Mayor Pro Tem Hodges Nay Councilman Jackson Yay Mayor Brown Nay ADMINISTRATION Recommendations were made by Mayor Pro Tem Hodges and Mayor Brown. The difference is approximately $12,000 Added $1,000 – Basketball Court Lighting, Utilities $2,500 – Missing Mill Park Renovations $5,000 – Misc. Expense Contingency (set aside funding for youth programming at Mayor’s request or whatever else Council elects to use for during the year) Councilman Norman motioned to keep the Manager’s recommended budget and if these other items are to be added, and if additional funding is needed, the individuals that want to see these 2 monies put in, find a grant and/or do fundraisers to get the additional money. Councilman Jackson seconded. The motion failed 3-2 Roll Call Vote: Councilman Mimlitsch Nay Councilman Norman Yay Councilman Jackson Yay Mayor Pro Tem Hodges Nay Mayor Brown Nay Councilman Mimlitsch motioned to approve the Board recommended amount. Mayor Pro Tem Hodges seconded. Councilman Jackson requested that the money promised to be given to Makea Slade be retained in the budget. After stating the budget will be thrown out of balance by $8,500, Councilman Norman made a friendly amendment: Because he knows the changes will throw the budget out of balance, and Council agreed to take the governmental budget as is, Councilman Norman is willing to take the $3,500 out of his salary to make up difference for the utilities, electricity, maintenance and park. Councilman Mimlitsch declined the friendly amendment. He is agreeable with doing fund raising to offset some of this in the future. As far as the budget is concerned, he is going to leave the numbers alone. The motion passed 3-2 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Nay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay PUBLIC SAFETY Councilman Mimlitsch motioned to accept the Manager’s recommended $350,000 for Public Safety. Mayor Pro Tem Hodges seconded. Councilman Jackson said this is a contractual agreement for an outsourced service and needs to go under contractual obligations. The motion was seconded and passed 4-1 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Yay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay FIRE DEPARTMENT According to MayorPro Tem Hodgoes, Council withdrew from the 911 contract and there is a projected $1 per call increase. Councilman Mimlitsch motioned to accept the Fire Department Board Approved 2021/2022 Budget. Mayor Pro-Tem Hodges seconded the motion. The motion passed 4-1 3 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Yay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay STREET EXPENDITURES Mayor Pro Tem moved the $200,090 through departments and most of that ends up in streets and planning. He increased it to address streets, curbs, sidewalks, gutters and supplement funds. Councilman Mimlitsch motioned to approve the Board Recommended Budget. Mayor Pro Tem Hodges seconded the motion. According to Manager Hurdle, the ice plant figure is incorrect, it needs to be changed to $19,400. Mayor Pro Tem Hodges and Councilman Mimlitsch agreed to a friendly amendment to correct the ice plant figure. The motion passed 3-2 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Nay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay SANITATION No changes were made. Mayor Pro Tem Hodges motioned to accept Manager’s Recommended Budget for Sanitation. Councilman seconded. The motion passed 4 -1 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Yay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay SUPPORT Mayor Pro Tem Hodges stated this item was the total to be paid for the dispatch bill. Councilman Jackson questioned the $87,000 bill sent to the Town and the 911 Center was not used. Councilman Jackson reminded Mayor Pro Tem Hodges said in the last meeting that the 911 bill was dead. Now, it is being said Council is going to pay them. Councilman Jackson requested the numbers for the 5% tax increase. Councilman Jackson wanted to table this item until the next meeting but did not make a motion. Mayor Pro Tem Hodges motioned to approve the budget for support as presented by the Manager. Councilman Jackson said he would like to table. Councilman Norman seconded. No vote was taken n this matter. Mayor Pro Tem Hodges motioned to approve the budget for support as presented by the Manager. Councilman Mimlitsch seconded. 4 Councilman Jackson explained the 911 process and asked how Council justifies giving them $87,000 while rising water and sewer rates. Councilman Norman wants the 911 dispatch placed on the agenda for Monday’s meeting. Mayor Pro Tem Hodges explained the invoice cost of the 911 outstanding balance and the raising of water and sewer rates. The motion passed 3-2 Roll Call Vote: Councilman Mimlitsch yay Councilman Norman nay Councilman Jackson nay Mayor Pro Tem Hodges yay Mayor Brown yay Mayor Brown requested a five-minute recess. Council went into recess for five minutes at 10:30 p.m. and reconvened at 10:35pm CEMETERY Mayor Pro Tem Hodges said the bids for the cemetery contract came in between $40,000 - $47,000. He placed the figure as $43,000. It is up from the $35,500. Mayor Pro Tem Hodges moved that Council accept the amount on the screen. Councilman Mimlitsch seconded. Mayor Pro Tem Hodges amended his motion and changed the figure to $40,000. The motion passed 4-1. Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Yay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay DMV No changes were made to the DMV Budget. Councilman Mimlitsch motion to accept the DMV Budget as presented. Mayor Pro Tem Hodges seconded. Councilman Norman: questioned the increase and wanted to know where is the rest of the salary for the DMV. According to Manager Hurdle, the figures are showing funding for the portion of the DMV salary plus a part-time DMV clerk. You are seeing a percentage in DMV salary and other departments. The DMV only gets paid a percentage and the rest of the salary comes from another source. The motion passed 5-0 Roll Call Vote: Councilman Mimlitsch yay Councilman Norman Yay Councilman Jackson Yay Mayor Pro Tem Hodges Yay Mayor Brown Yay PLANNING AND MAIN STREET Mayor Pro Tem Hodges stated three changes: 5 $2,000 for Street beautification projects; $1,500 for town signage and improvements, $40,000 for the demolition of structures, and $83,451 for grant matching or for whatever Council elects to use it. This will balance the entire budget. Mayor Pro Tem Hodges motion to approve the Board approved budget. Manager Hurdle asked Council to take some of the $100,000 from planning and earmark it for renovation of the police department building. Councilman Jackson was totally against it . Mayor Pro Tem Hodges agreed with Councilman Jackson and preferred not to change anything until he saw a renovation plan. It needs to be place in Administration. According to Manager Hurdle, there is already repairs identified for the building. According to Mayor Brown, we can move it for maintenance and repairs. The building should be occupied. That can be through a budget amendment. The motion was approved 3-2. Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Nay Councilman Jackson Nay Mayor Pro Tem Hodges Yay Mayor Brown Yay ELECTRIC No change for electric Councilman Jackson motioned to accept Manager Hurdle’s recommended budget for electric. Councilman Mimlitsch seconded. The motion passed 5-0 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Yay Councilman Jackson Yay Mayor Pro Tem Hodges Yay Mayor Brown Yay WATER & SEWER No changes were made for water and sewer. Mayor Pro Tem Hodges explained the current system and a potential rate schedule to eliminate the system now in place. . He suggested the rates be based on usage and implementing a tiered system and charging the facility that has multiple residents. If a system like this is done, resident’s rates may increase some but not dramatically. This will spread the burden to institutions and businesses that can afford to pay. Councilman Norman: the biggest problem is the bills are already too high for residents. Businesses should be charged differently because they can afford it more than citizens and they may use the expense as a tax write off, citizens cannot. He reminded Council that they still have not dealt with the Winfall issue. Councilman Jackson motioned to adjourn. Mayor Pro Tem Hodges seconded. Mayor Brown asked what is the next step? Council needs to send Manager Hurdle the Board vote on Budget and come back with a decision on the water and sewer part of the budget. Mayor Pro Tem Hodges talked about selecting a rate because Manager Hurdle cannot have a 6 budget to approve without the rate. Councilman Jackson wants to run it by other elected officials before he makes a decision. Mayor Brown suggested, if put on the Agenda for Monday, Council can call one another or email their vote or suggestions prior to Monday so that the governing board will be ready to accept or reject the recommendations. Councilman Norman stated that will not happen. The motion to adjourn passed 5-0 Roll Call Vote: Councilman Mimlitsch Yay Councilman Norman Yay Councilman Jackson Yay Mayor Pro Tem Hodges Yay Mayor Brown Yay The meeting adjourned at 11:27pm 7